How PE investments boosting Bangalore real estate


Bangalore real estate industry has always been considered to be a benchmark for other cities. Bangalore real estate has witnessed strong growth over the last decade with even spread of projects, capital appreciation for buyers and low builder buyer disputes. Bangalore real estate industry has been driven by string fundamentals as increasing growth means the requirements for units each year goes high.

Influx of Private Equity in Indian Real Estate: According to the PwC MoneyTree India report, a quarterly study of private equity investment activity, India has received Private equity investments to the tune of $2.8 billion in the period between the quarters of January to March 2015 which is a 15 per cent increase over Private Equity investments received last year. Bangalore emerged as the dearest investment destination with $715 million in 35 deals, followed by the National Capital Region (NCR). Clearly Private Equity investments are favorable to Bangalore as the city has offered good returns on investments in far more number of projects and areas compared to any other Indian city.

Bangalore and High Private Equity Inflow: Bangalore being the IT hub of India is seen to be the city which creates the maximum number of jobs each year. The high volume of job creation means more people are likely to live in Bangalore and its peripheral areas than ever before. This has been a real estate growth developer for Bangalore making it attract the highest number of Private Equity investments. It is not that this is the first time Bangalore has witnessed such a huge inflow of Private equity investments. Bangalore has been topping the city wise charts of Private Equity inflows from a number of years now offering good returns for investors and helping builders and developers alike.

Good Developer Profile Helps Bangalore in Attracting Private Equity Investments: Another strong reason that goes in the favor of Bangalore while attracting a large chunk of Private equity investments in the presence of good and reputed builders.  The overall developer profile of Bangalore is much better than other Indian cities. Since Bangalore real estate development has been thriving on large scale projects, small time builders with a dubious track record are often not active in the market making way for easy Private Equity investment. Comparatively other Indian cities has a high presence of small time builders with not so clean track record making it difficult for Private equity investors to source funds for such projects.

Private Equity Investments both in Office and Residential Spaces: Investing in Bangalore gives private equity investors the advantage to invest in both commercial and [residential property projects]( making their investments balanced and secure at the same time. In the coming quarters, Bangalore is likely to retain its top position as a preferred investment destination for private equity investors.

Private Equity Offers a Win-Win for Developers and Buyers: The inflow of private equity in the Bangalore real estate market offers a win-win situation for all concerned. While builders no longer face a cash crunch and can complete their projects well in time, the investors are able to get good returns on investments and with no delays buyers are able to get their residential and commercial projects in time making it a perfect situation.